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I'm looking forward to 320p tomorrow
bargains like this........................treading water during the crisis with new contracts and a juicy dividend, this is cheap as chips and waking up now
Per Jan 21 TU, PGH will be publishing accounts in late March 2021.
This reinforces the notion that PGH will be issuing their "Dividend and Notice of Results" RNS very very soon.
In a normalised year - using 2019 for e.g. - divies werer 23.3p. At current SP, that translates to a yield of circa 10% p.a.
Of course there is not guarantee that future divies will be at this level and most likely divies may be reduced in view of covid. However, this reflects the general generous div policy of PGH.
In any case, given today's SP, that is an excellent div yield
+
Huge cap gain potential.
Typically around this time - PGH come up with "Dividend and Notice of Results" RNS
I'd expect a possible SP increase post announcement to reflect new PI buy-ins.
Sure with end of lockdown in sight - PGH are going to be a beneficiary. Their staff could not get to see their clients for insurance proposals but with the end of lockdown, they will be.
+
For the past 2 years, they have proposed a dividend around this time (mid to end of Feb time) - I am expecting circa 3% yield. I am hoping within these few days time they will be announcing ( Don't let me down Deborah!).
Putting my head on the line - at the end of the 2021 - 300p? + divies whilst you wait.
Also, any one reading this BEFORE 8th March, may want to take a look at the most recent proactive investors video
https://www.youtube.com/watch?v=TFqjdVAqbgs
Where Deborah (CEO) CLEARLY says that they will be announcing to the market a very big contract win of a retailer but not until 8th March when the retailer themselves will announce it to their staff first. I reckon this big win via RNS will be warmly received by PIs.
Furthermore, what is more encouraging is that they now have an additional 180,000 customers to target compared to 2020. So in 2020, circa they had 450,000.
In 2021, at end of lockdown, they have 450,000 + 180,000 = 630,000.
Surely, their customer base is going to increase for 2021.
Also, there has been NO dilution from fundraising.
They are completely cashed up.
They pay divies - pretty healthy yield at current SP (on top of my head 5% ? )
And 2020 results were excellent given that 4-5 months were lockdown months
This is not a sexy share. However, I think it will play a quiet but major role in any PI's pf.
I bought into PEN , CRL ; EQLS ; RBGP ; IXI when the market disregarded them. Made very healthy returns. PGH is very very similar. No one fancies them right now.
As soon as people think of end of lockdown, they think of NEXT, ABF, SHOE and TED (the latter 2 I bought too for trade) but they do not think or know about PGH. Shame really coz over 2 years, I reckon PGH will return back to 400-460p level translating to a 100% - 130% return over 2 years (in simple non compounded terms 50% - 65% per annum).
What's more, is that given zoom, their salesforce have been added a new dimension to selling insurance to clients AFTER the initial introduction meeting = savings in time and higher level of customer contact = higher customer retention. This means higher sales for 2021 and 2022 thereafter.
Looking into this from my stock screener, something must be off £20m in cash, no debt, valued at £48m without cash generating c£10m pa....
sorros - look at their SP pal - it's priced for armageddon. It's priced lower than its Spring low on April 3rd. ??? Is it that bad?
Given SP level, a resolute performance, I expected worse given how Deborah was a bit doom and gloom about H2 2020 when interviewed .
Once C19 out of the way / managed - this will fly back to pre-covid levels.
I'd say that this is one of the few genuine value players around that ticks the value stock boxes
- got cash,
- no need for fundraising / dilution
- got potential growth,
- got a moat (-ish) ,
- turnaround under process so potentially could earnings in few years time could surpass pre-covid levels ,
- new efficient + cheaper ways to market their insurance (cheaper marketing channels)
- potential divies (historical circa at this current SP, 4.5% - 5% yield - so you get paid whilst u wait for some cap gains)
- if market correction comes - this stock's downside is limited.
Stock is very very underrated
expected to see a more significant financial impact on income and profit. sadly
Off-topic Personal Group (LON:PGH) - Rather strange gap down by the market makers in the morning. Given the SP was 399p in Jan 2020 and at yesterday's close 211p, I'd expected a gap up rather than down.
- New contracts and strategic partnerships
- 2020 Rev similar to 2019
- Cash has gone up by 3mn
- “Adjusted EBITDA to be upwards of £9.5m (2019: £11.0m) reflecting the change in revenue mix”
- No debt 2020 (2019 : nil)
- new virtual insurance sales solution has shown encouraging initial results. We have also expanded our policyholder base to capture contingent workers
- Sage Collaboration is encouraging
- No fundraising / Cash dilution in 2020 or 2021 (yet)
Personal Group (LON:PGH) 's Outlook: With further Government lockdowns ongoing, 2021 is expected to see a more significant financial impact on both income and profit as the ongoing restrictions reduce the ability to write new insurance sales and the historic impact from 2020 flows through. We also remain vigilant for the potential impact on the Group from any increase in claims. Notwithstanding, there are a number of clear strategic growth opportunities which underpin our confidence in the Group's prospects over the medium-term. New client wins will give Personal Group access to a significant number of employees when restrictions are lifted, all of whom will have the ability to apply for Group's insurance products, and the partnership with Sage represents an exciting, tangible opportunity to materially grow our target market for employee benefits.
Does not sound that bad to me!
Hope so Johnnyboy - does move fast on low volumes. So positive news will shoot this back to Aug 20 levels - 300p
3 years to go back to pre covid levels - that would be disappointing. A lot of revenue is reoccurring - just growth will have taken a hit. I'd expect 50% from here in the SP by next Christmas at least
Liquidity will come when there is performance.
It's a turnaround situation - relatively new CEO in place - growth strategy in place.
Put it this way - if it can go back to pre-covid levels in say 3 years time without dilution - this means 100% upside in 3 yrs.
Boringly safe but excellent returns.
In saying that, the prevalent trend for their main clientele base, i.e. blue collar staff is to buy insurance - more than ever. Given the uncertainty and covid health risks presented people are naturally more risk averse particularly when they are the breadwinner of the family. Hats off to PGH for meeting all covid claims. Real stamp of trust there.
In addition, with virtual visits with staff, it's made it easier, cheaper and more efficient for PGH staff to service their clients - making a positive from a negative.
I think the market has been pricing this into the sp from the interims and why I originally delayed buying in:
"Despite the strong start to 2020, the second half will not be without its challenges. As alluded to above, the inability to write new insurance sales during lockdown will impact premiums in H2 2020 and 2021 in the insurance business"
All priced in now imo, I bought in today
I suppose
CON
- "Post the lockdown, face-2-face meeting were stopped resulting in only £2.1m of new business being written versus £4.6m in H1 2019 but with 60-70% written pre the lockdown. This decline will reduce future premiums / profits and the 2H number will be ‘even lower’. " I can live with this as the company sorts itself out - it's got tons of liquidity to do so.
- may take a little time to recover business that was deferred due to covid lockdown in H1
- Brexit no-deal concerns? I suppose if companies start slashing their workforce and blue collar staff are unfortunate to bear the brunt of Brexit they may be impacted negatively.
Overall for the risk:rewards, I'm in.
Totally agree Johnny.
Cheaper than March 2020 levels! What's going on! Positive update during summer ; SP 300p , now SP around 200p mark - are you serious!
- They got plenty of cash (even after taking into consideration solvency rules) ;
- 50% down from pre-covid levels (even more if you look back to 2018 and beyond) so tons of upside ;
- H1 was affected by lockdown but they learnt how to operate with virtual visits with customers.
- clientele base being primarily blue-collar staff will always need company insurance + perks
- I thought I heard that they have just acquired a big name supermarket chain - to be announced they said (or am i imagining things?) - this could boost up their numbers big time.
- Their App was extensively used by the company to communicate with their staff = stickiness for the future = less churn from existing staff / company
- Alliance with Sage - early times - but could be a new nesting ground for new growth
- CEO says they are ahead of last year's trading and this is during covid !!! So why is the SP so low!
- historic divies were 10% yield - ok - may not get that high but still - likely to be decent
- appointment of Martin Bennett as a non-executive director from January 1, 2021 - formerly CEO of Homeserve (ftse 100 co.) - good addition - I am sure will add beef to the company's strategy and way forward.
- the CEO recently bought £10,000 worth of shares on the 16/11, adding to her sizeable holding. On the 25/11 a RNS was published highlighting other insider purchases, one being the interim CFO. If the frugal CFO buys, it's likely that the stock is pretty robust.
- management focus on growth - CEO is fairly newish + new ‘growth driven’ Chairman is to be announced shortly, replacing the existing one at the next AGM having been appointed in 2016 but joined the PLC in 2013. The Deputy Chairman is also stepping down after 20 years of service but is to remain on the insurance board.
- Future meetings with customers could be more leaning towards virtual = cheaper + efficient for PGH staff + better customer service which means higher stickiness of customers.
PE current is 8 + ROCE is > 20% - excellent
Excellent staff culture - I checked out Glassdoor - good reviews by staff and looks like a vibrant place to work = high retention of key staff and high motivation of staff
- Health and wellbeing is more and more important after covid – so likely biz will increase
- They paid out on ALL their covid claims - I think they can shout this out loud proudly (here's looking at you hiscox) - I think this will be remembered by their customers.
What's not to like at these prices!
It's a regular occurrence PGH is cheap right now - the SP wont take off imminently but when sentiment changes it will drift back up quite quickly I suspect. I like the business and its debt free, cash positive with recurring revenues.
why are buy's marked as sells ?
There is a detailed report on our recent London seminar where Personal Group recently presented which can be found in our members area here: hTTps://www.sharesoc.org/members-area/ To access the report, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here: hTTps://www.sharesoc.org/membership/ Once you've joined, you'll receive an invitation to register for our "members network" private social network, from where you'll be able to access the report (and reports on 100s of other meetings). If you're already a member and have any difficulty accessing the report, please do not hesitate to contact us here: hTTps://www.sharesoc.org/contact-us/ For our future seminars you may want to see here: hTTps://www.sharesoc.org/events/
Strong turnover growth, strong profit growth,dividend increase,strong future. Excellent performance.BUY BUY BUY
article on this on page 84..gla...
Personal group has undertaken a series of initiatives to improve our customer experience, sharpen its product offering and to strengthen its operating systems, all with a view to building a sound platform for longer-term growth, it explained. Scanlon told Sharecast that he was encouraged by the strong levels of new business in a difficult environment. "Customer engagement is a priority for us," Scanlon asserted, adding that equipping customer-facing staff with iPads has led to a sharp increase in on-the-spot subscriptions. Personal Group is rather old school in that it still sends company reps out to talk face-to-face with customers to suss out their requirements, but its use of technology, in the form of Apple's tablet device, is very modern. "The great thing about the iPad is that it enables instant sign-up. We can show them the benefits of our services and they can sign-up there and then. It's early days, yet, but we've seen sign-ups go up to fifty or sixty per cent from ten to fifteen previously," Scanlon added. As for the economic picture, the employment figures are holding up surprisingly well during the recession, and Scanlon confirmed to Sharecast that Personal Group's overall model is seeing no change in employment levels. "We've like to improve our attrition rate, obviously. We've had one or two companies running into problems but nothing, touch wood, too significant," he concluded. An interim dividend of 8.9p per share has been recommended, up from 8.7p a year earlier.
Employee retention scheme specialist Personal Group reported a fall in half year profit but says demand for its core products remains robust. The employee benefits and insurance firm added that trading for the current period remains in line with the board's expectations. Pre-tax profit fell to £4.1m for the six months to June 30th 2012 from £4.8m previously. Revenue for the period increased by 1.4% to £13.8m. EPS, before goodwill impairment, rose 6.1% to 12.2p per share. Profit before tax and before goodwill impairment increased by 3.3% to £4.9m while claims incurred have remained in line with the board's expectations. Chief Executive Mark Scanlon commented: "We are reporting our strongest ever half year operating results, with new business generation at a consistently high level." Chairman Chris Curling added: "Demand for our core products remains strong and trading for the current period remains in line with the board's expectations. Much work is under-way to improve our customer offering and to strengthen our competitive advantage. The board therefore remains optimistic for the prospects of the group."
Personal Group pays dividends every quarter, has grown consistently since it was founded 28 years ago and provides a service to lower-income workers nationwide. The shares yield more than five per cent and the firm has appointed a new chief executive, Mark Scanlon, with a brief to expand the business. So far, so encouraging.Personal Group’s range of products offers companies a handy way of making employees feel wanted, even when pay increases are low or non-existent. Perks help attract new workers and retain staff and more businesses than ever are looking at these types of benefits in today’s tough environment. Personal Group offers benefits primarily to blue-collar employees such as postal workers, train drivers and couriers. There are three core products – cash plans, which offer policyholders extra money if they have an extended stay in hospital, convalescence plans, to be used on return from hospital, and death benefits, which pay out lump sums to close family in the event of a worker’s death. Next month, Scanlon will unveil his strategy. The focus will be on growth, but Personal Group’s core offering will be unchanged. Customers will continue to receive attentive service and shareholders will still receive healthy dividends. Analysts expect profits to be slightly lower in 2012, reflecting investment in the future, but Personal Group is highly cash-generative so the dividend on shares now trading at 346½p is forecast to rise from 17.4p to 17.8p, payable in four equal instalments next year. Midas is of the following opinion: “Personal Group has grown steadily since the 1980s and is set to increase its firepower over the next few years. The shares offer an attractive blend of income and excitement. Buy.”
Panmure Gordon upgrades Personal Group Holdings from sell to hold, target price raised from 240p to 265p.
Panmure Gordon downgraded its recommendation for Personal Group Holdings (PGH), the provider of employee benefits and financial services, from "hold" to "sell" with a reduced target price of 240p, down from 265p. The broker notes the announcement that the well regarded chief executive Nigel Brtittle has left the company "with immediate effect" to pursue other opportunities. The apparent reluctance by the group to communicate any reasons for his departure has raised sufficient uncertainty to lead Panmure to cut its recommendation and lower its target price. Personal shares inched higher 2p to 271p.